Following a recent attempt to overcome the psychological barrier at $ 10,000, the price of Bitcoin fell back to the support zone. Where the momentum started, it borders a key point at $ 9,400. If you are interested in knowing what can influence the price of BTC in the short term, stay to read this post and know some key points about the price of Bitcoin.
5 key points that can move the price of Bitcoin next week
Despite a rather confusing scenario, the upward trend that has been developing in recent months remains intact. Driven by some important fundamentals, which could affect the price in the coming days, and which we list below.
Bitcoin options traders on the rise are the majority
According to a metric to measure the interest of the options on Bitcoin, it indicates that the positions for sale have decreased to 0.43. This is the lowest figure since March 24, which means a sharp decrease from 0.81 that indicated 4 weeks ago.
This is one of the simplest indicators to measure the intention of the operators based on what they expect to happen with the price, so the current situation can be classified as optimistic.
The indicator published by Skew, uses data from the main crypto derivatives providers, such as Bakkt, Deribit, OKEx, and CME.
Bitcoin production is being monopolized by a few
The Grayscale Bitcoin Trust is one of the most important crypto asset investment funds. He is currently the main applicant for Bitcoin for the purpose of storing, and subsequently distributing to his clients according to their demands.
In the last week alone they acquired 9,503 BTC, while the production of new coins was only 6,863.
So far this year, Grayscale’s exchange-traded instrument, GBTC, has consumed more than 25% of Bitcoin’s production so far this year. Compared to 10% last year, the growth in interest is surprising, not to mention the 1% of just 2 years ago.
Pressure in USD 9,400
Even the technical analysis continues to indicate that the upward trend, both medium and short term, remains intact, so as a good follower of it, I am still in favor of an escape above USD 10,000.
Currently the bulls and bears are fighting in a nearby support at USD 9,400, which could generate a volatile movement in the coming hours.
If buyers fail to quickly regain control, I am talking about the next few hours, it is quite possible that exhaustion will lead to a search for demand in neighboring supports, for example, USD 8,750.
Miners selling more than what is produced
According to data provider Byte Tree, miners sold an average of 6,561 BTC over the past week, generating a deficit of 673 BTC, compared to 5,888 BTC produced during the same time period.
Although rationality would lead us to think that this means a negative scenario, it is necessary to understand that miners hold holding when the market is weak, and not because they have a bullish view for the long term, but more because the market does not is well supported. This is the vision set forth by Byte Tree President Charlie Morris.
Miners carry out their operations mainly cash-based, as they must liquidate their positions almost daily due to the need to cover the costs that this activity requires. This is evidenced if we observe that most of the BTC that circulates on the exchanges are sold by mining groups.
Volatility marking the start of the next Bull Run
Despite the fact that it may appear that this publication is biased to a bullish view, the data is there and best of all, the Blockchain does not allow manipulation.
Although it is entirely possible that we will see a drop in the coming week, I am clear that the odds are in favor of bullish momentum, even with the price seeing short-term losses, possibly in search of liquidity.
More and more analysts indicate that everything is aligned to make it a great year for Bitcoin.
Currently, a behavior very similar to what was seen before the exponential Bull Run of 2017 is being observed, so if we continue repeating history, a volatile escape to nearby resistances may be observed in the coming days.
And what do you think about these 5 key points about the price of Bitcoin? Will we be seeing the price of Bitcoin jumping above USD 10,000 next week? Let us know your opinion in the comments!